GE extends bid deadline for Alstom energy sector
General Electric has extended the deadline for its $16.9bn bid for the energy sector of Alstom. This will give the firm more time for talks with French ministers in the hope it will secure support for the deal.
Alstom announced last month that it is to sell off its energy part of the company in order to strengthen its transport business. Read more in our previous blog Alstom may sell off energy business
The American multinational is trying to ease concerns over the selling one of France’s flagship companies to a foreign buyer, by offering concessions on issues such as access to technology, French ownership of part of the business, and employment.
The deadline for a formal decision from Alstom on the GE offer has been extended until 23rd June. This is giving GE 3 extra weeks for negotiations with the government.
However this extension has given Siemens of Germany more time to make their formal bid to Alstom. Siemens has proposed offering its train business in a swap for Alstom’s energy operations.
The French government is having doubts about selling to a foreign firm but GE executives are continuing talks with French officials. Some of the concessions GE are offering include allowing Alstom to buy or form a joint venture with GE’s signalling business, and putting the offshore wind and hydroelectric power operations that would be bought by GE into a separate subsidiary that could be part-owned by French investors.
GE has also given assurances that French nuclear power generators would have continued access to Alstom technology and servicing for their steam turbines, and promised net growth in jobs in the businesses it acquires.
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